Pub Date : 2021-04-15DOI: 10.1017/S1355770X21000243
M. Chitiga‐Mabugu, M. Henseler, R. Mabugu, H. Maisonnave
Abstract This paper offers a quantitative assessment of the impacts of the COVID-19 pandemic-induced lockdown and government fiscal plan, containing ‘green’ elements on the economy and the environment of South Africa. The analysis uses a dynamic computable general equilibrium model operationalised using a social accounting matrix coupled with a greenhouse gas balance and emissions data. We find that while the economy is harshly impacted by the pandemic in the short term, the government fiscal package ameliorates and cushions the negative effects on poor households. Importantly, an adaptation of the fiscal package towards a ‘greener’ policy achieves the same economic outcome and reduces unemployment. Carbon dioxide emissions decrease in the short run due to economic slowdown. This improvement persists until 2030. These results can be used as decision support for policy makers on how to orient the post COVID-19 policies to be pro-poor and pro-environment, and thus, ‘build back better and fairer’.
{"title":"The impact of the COVID-19 enforced lockdown and fiscal package on the South African economy and environment: a preliminary analysis","authors":"M. Chitiga‐Mabugu, M. Henseler, R. Mabugu, H. Maisonnave","doi":"10.1017/S1355770X21000243","DOIUrl":"https://doi.org/10.1017/S1355770X21000243","url":null,"abstract":"Abstract This paper offers a quantitative assessment of the impacts of the COVID-19 pandemic-induced lockdown and government fiscal plan, containing ‘green’ elements on the economy and the environment of South Africa. The analysis uses a dynamic computable general equilibrium model operationalised using a social accounting matrix coupled with a greenhouse gas balance and emissions data. We find that while the economy is harshly impacted by the pandemic in the short term, the government fiscal package ameliorates and cushions the negative effects on poor households. Importantly, an adaptation of the fiscal package towards a ‘greener’ policy achieves the same economic outcome and reduces unemployment. Carbon dioxide emissions decrease in the short run due to economic slowdown. This improvement persists until 2030. These results can be used as decision support for policy makers on how to orient the post COVID-19 policies to be pro-poor and pro-environment, and thus, ‘build back better and fairer’.","PeriodicalId":47751,"journal":{"name":"Environment and Development Economics","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-04-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47883389","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-12DOI: 10.1017/S1355770X21000036
Ying Chen, Güney Işıkara
Abstract The concern for inequality, growth and development is undoubtedly crucial in the context of climate change mitigation and adaptation. However, most studies either rely on the nation-state estimates of carbon emissions to propose a uniform nation-wide growth (or degrowth) strategy, or they tailor the method to assess the inequality of one country at a time, making a cross-country cross-income comparison difficult. To fill this analytical gap, we synthesize the existing methods of emission calculations and calculate the level of carbon emissions associated with given income deciles of household consumption in five countries, namely China, Germany, India, the UK and USA. We find that the within-country inequality varies among countries, with the ratio between the top and bottom income deciles ranging from three to nine at the household level. We also find that the carbon emissions of the top income group in urban China is almost comparable to that of their peer group in the US, UK and Germany. Based on these results, we discuss the use of the remaining global carbon budget in the context of development and inequality.
{"title":"Beyond the nation-state narrative: an empirical inquiry into the cross-country and cross-income-group carbon consumption patterns","authors":"Ying Chen, Güney Işıkara","doi":"10.1017/S1355770X21000036","DOIUrl":"https://doi.org/10.1017/S1355770X21000036","url":null,"abstract":"Abstract The concern for inequality, growth and development is undoubtedly crucial in the context of climate change mitigation and adaptation. However, most studies either rely on the nation-state estimates of carbon emissions to propose a uniform nation-wide growth (or degrowth) strategy, or they tailor the method to assess the inequality of one country at a time, making a cross-country cross-income comparison difficult. To fill this analytical gap, we synthesize the existing methods of emission calculations and calculate the level of carbon emissions associated with given income deciles of household consumption in five countries, namely China, Germany, India, the UK and USA. We find that the within-country inequality varies among countries, with the ratio between the top and bottom income deciles ranging from three to nine at the household level. We also find that the carbon emissions of the top income group in urban China is almost comparable to that of their peer group in the US, UK and Germany. Based on these results, we discuss the use of the remaining global carbon budget in the context of development and inequality.","PeriodicalId":47751,"journal":{"name":"Environment and Development Economics","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/S1355770X21000036","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42143589","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-12DOI: 10.1017/S1355770X21000085
Emmanuel Nshakira-Rukundo, J. W. Kamau, H. Baumüller
Abstract Weather shocks affect smallholder farmers and pastoralists in Sub-Saharan Africa unequally. Agricultural insurance has emerged as a safety net option to protect farmers’ welfare. However, in comparison to other regions, fewer African farmers and pastoralists have adopted agricultural insurance. This review synthesises broad recent literature on why insurance take-up has remained low and highlights six key themes, including: (1) product quality, (2) product design, (3) affordability, (4) information and education, (5) behavioural and sociocultural factors, and (6) the role of government in enabling markets. We shed light on how insurance uptake can be encouraged.
{"title":"Determinants of uptake and strategies to improve agricultural insurance in Africa: a review","authors":"Emmanuel Nshakira-Rukundo, J. W. Kamau, H. Baumüller","doi":"10.1017/S1355770X21000085","DOIUrl":"https://doi.org/10.1017/S1355770X21000085","url":null,"abstract":"Abstract Weather shocks affect smallholder farmers and pastoralists in Sub-Saharan Africa unequally. Agricultural insurance has emerged as a safety net option to protect farmers’ welfare. However, in comparison to other regions, fewer African farmers and pastoralists have adopted agricultural insurance. This review synthesises broad recent literature on why insurance take-up has remained low and highlights six key themes, including: (1) product quality, (2) product design, (3) affordability, (4) information and education, (5) behavioural and sociocultural factors, and (6) the role of government in enabling markets. We shed light on how insurance uptake can be encouraged.","PeriodicalId":47751,"journal":{"name":"Environment and Development Economics","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-04-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/S1355770X21000085","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42909301","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-05DOI: 10.1017/S1355770X21000073
Jaqueline Oliveira, Bruno Palialol, P. Pereda
Abstract The relationship between temperature and agriculture outcomes in Brazil has been widely explored, overlooking the fact that most of the country's labor force is employed in non-agriculture sectors. We use monthly individual-level panel data spanning the period from January 2015 to December 2016 to ask whether temperature shocks impact non-agriculture wages in formal labor markets. Our results show that additional days in a month that fall within high-temperature ranges have significant adverse effects on real wages. Assuming a uniform climate change scenario where the daily temperature distribution shifts by 2$^{circ }$C, we calculate income losses for formal workers in non-agriculture markets equivalent to 0.12 per cent of 2015 GDP.
{"title":"Do temperature shocks affect non-agriculture wages in Brazil? Evidence from individual-level panel data","authors":"Jaqueline Oliveira, Bruno Palialol, P. Pereda","doi":"10.1017/S1355770X21000073","DOIUrl":"https://doi.org/10.1017/S1355770X21000073","url":null,"abstract":"Abstract The relationship between temperature and agriculture outcomes in Brazil has been widely explored, overlooking the fact that most of the country's labor force is employed in non-agriculture sectors. We use monthly individual-level panel data spanning the period from January 2015 to December 2016 to ask whether temperature shocks impact non-agriculture wages in formal labor markets. Our results show that additional days in a month that fall within high-temperature ranges have significant adverse effects on real wages. Assuming a uniform climate change scenario where the daily temperature distribution shifts by 2$^{circ }$C, we calculate income losses for formal workers in non-agriculture markets equivalent to 0.12 per cent of 2015 GDP.","PeriodicalId":47751,"journal":{"name":"Environment and Development Economics","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/S1355770X21000073","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45282747","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-01DOI: 10.1017/s1355770x21000061
{"title":"EDE volume 26 issue 2 Cover and Back matter","authors":"","doi":"10.1017/s1355770x21000061","DOIUrl":"https://doi.org/10.1017/s1355770x21000061","url":null,"abstract":"","PeriodicalId":47751,"journal":{"name":"Environment and Development Economics","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/s1355770x21000061","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43194329","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-04-01DOI: 10.1017/s1355770x2100005x
{"title":"EDE volume 26 issue 2 Cover and Front matter","authors":"","doi":"10.1017/s1355770x2100005x","DOIUrl":"https://doi.org/10.1017/s1355770x2100005x","url":null,"abstract":"","PeriodicalId":47751,"journal":{"name":"Environment and Development Economics","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-04-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/s1355770x2100005x","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47745506","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-03-22DOI: 10.1017/S1355770X21000048
F. Wirl
Abstract Environmental incentives are characterized by two distinct features: (1) a benefit-cost trade-off; and (2) private information about the trade-off. This suggests a degree of freedom of where to attach the private information, either to the benefit or the costs, as long as these choices imply the same behavior absent incentives (‘observation equivalent’). However, we show that different observation equivalent specifications can lead to different incentives. This is demonstrated for two cases: rainforest protection and contributions to a public good. Therefore, the choice of a private information parameter must be justified against observation equivalent alternatives.
{"title":"Environmental incentives facing private information","authors":"F. Wirl","doi":"10.1017/S1355770X21000048","DOIUrl":"https://doi.org/10.1017/S1355770X21000048","url":null,"abstract":"Abstract Environmental incentives are characterized by two distinct features: (1) a benefit-cost trade-off; and (2) private information about the trade-off. This suggests a degree of freedom of where to attach the private information, either to the benefit or the costs, as long as these choices imply the same behavior absent incentives (‘observation equivalent’). However, we show that different observation equivalent specifications can lead to different incentives. This is demonstrated for two cases: rainforest protection and contributions to a public good. Therefore, the choice of a private information parameter must be justified against observation equivalent alternatives.","PeriodicalId":47751,"journal":{"name":"Environment and Development Economics","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/S1355770X21000048","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45269714","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-03-09DOI: 10.1017/S1355770X21000024
Ana Espínola‐Arredondo, E. Stathopoulou, Félix Muñoz-García
Abstract This paper examines green alliances between environmental groups (EGs) and polluting firms, which have become more common in the last decades, and analyzes how they affect policy design. We first show that the activities of regulators and EGs are strategic substitutes, giving rise to free-riding incentives on both agents. Nonetheless, the presence of the EG yields smaller welfare benefits when firms are subject to regulation than when they are not. In addition, the introduction of environmental policy yields large welfare gains when the EG is absent but small benefits when the EG is already present.
{"title":"Regulators and environmental groups: better together or apart?","authors":"Ana Espínola‐Arredondo, E. Stathopoulou, Félix Muñoz-García","doi":"10.1017/S1355770X21000024","DOIUrl":"https://doi.org/10.1017/S1355770X21000024","url":null,"abstract":"Abstract This paper examines green alliances between environmental groups (EGs) and polluting firms, which have become more common in the last decades, and analyzes how they affect policy design. We first show that the activities of regulators and EGs are strategic substitutes, giving rise to free-riding incentives on both agents. Nonetheless, the presence of the EG yields smaller welfare benefits when firms are subject to regulation than when they are not. In addition, the introduction of environmental policy yields large welfare gains when the EG is absent but small benefits when the EG is already present.","PeriodicalId":47751,"journal":{"name":"Environment and Development Economics","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-03-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/S1355770X21000024","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41620883","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-03-08DOI: 10.1017/S1355770X20000571
Olukorede Abiona
Abstract This paper evaluates the short-term health effects of in utero drought shock using repeated cross-section household data on Malawi. The main finding reveals that the effects of in utero harvest variability caused by rainfall shocks on child growth indices are driven by the deleterious effects of negative rainfall deviations, namely droughts. Negative rainfall deviation during the agricultural season prior to the gestational period of a child leads to a 21.8 per cent average local level reduction in age-standardized height scores, with the counterpart positive rainfall deviation having no apparent effect. The paper also uses harvest and consumption patterns to establish an important link between early-life malnutrition and growth serving as a precursor for the fetal period programming hypothesis in the literature. The direct impact of embryonic period shocks on growth provides supportive evidence on potential interaction between nutritional and environmental pathways.
{"title":"Malnutrition pathway for the impact of in utero drought shock on child growth indicators in rural households","authors":"Olukorede Abiona","doi":"10.1017/S1355770X20000571","DOIUrl":"https://doi.org/10.1017/S1355770X20000571","url":null,"abstract":"Abstract This paper evaluates the short-term health effects of in utero drought shock using repeated cross-section household data on Malawi. The main finding reveals that the effects of in utero harvest variability caused by rainfall shocks on child growth indices are driven by the deleterious effects of negative rainfall deviations, namely droughts. Negative rainfall deviation during the agricultural season prior to the gestational period of a child leads to a 21.8 per cent average local level reduction in age-standardized height scores, with the counterpart positive rainfall deviation having no apparent effect. The paper also uses harvest and consumption patterns to establish an important link between early-life malnutrition and growth serving as a precursor for the fetal period programming hypothesis in the literature. The direct impact of embryonic period shocks on growth provides supportive evidence on potential interaction between nutritional and environmental pathways.","PeriodicalId":47751,"journal":{"name":"Environment and Development Economics","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-03-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/S1355770X20000571","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45139202","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2021-03-08DOI: 10.1017/S1355770X20000595
Stefano F. Verde, Giulio Galdi, I. Alloisio, S. Borghesi
Abstract This paper analyses the role that companion policies have had in the reduction of emissions regulated by the EU Emissions Trading System (EU ETS) and the related policy interactions, with a view to identifying relevant insights for China's forthcoming Emissions Trading System (ETS). The investigation rests on: (a) the observation of the EU's and China's ETSs and policy mixes; (b) economic theory concerning companion policies and ETS design; and (c) empirical ex-post evidence from the EU ETS. Three main conclusions emerge from the analysis. First, China's ETS, while not imposing a fixed cap on emissions, will not be immune to waterbed effects of companion policies. Second, the European experience stresses the importance of making explicit the objectives pursued by companion policies, and of balancing policies for innovation and policies for adoption of low-carbon technologies. Third, in the presence of a major market surplus, only permanent adjustments to allowance supply can be effective in raising prices.
{"title":"The EU ETS and its companion policies: any insight for China's ETS?","authors":"Stefano F. Verde, Giulio Galdi, I. Alloisio, S. Borghesi","doi":"10.1017/S1355770X20000595","DOIUrl":"https://doi.org/10.1017/S1355770X20000595","url":null,"abstract":"Abstract This paper analyses the role that companion policies have had in the reduction of emissions regulated by the EU Emissions Trading System (EU ETS) and the related policy interactions, with a view to identifying relevant insights for China's forthcoming Emissions Trading System (ETS). The investigation rests on: (a) the observation of the EU's and China's ETSs and policy mixes; (b) economic theory concerning companion policies and ETS design; and (c) empirical ex-post evidence from the EU ETS. Three main conclusions emerge from the analysis. First, China's ETS, while not imposing a fixed cap on emissions, will not be immune to waterbed effects of companion policies. Second, the European experience stresses the importance of making explicit the objectives pursued by companion policies, and of balancing policies for innovation and policies for adoption of low-carbon technologies. Third, in the presence of a major market surplus, only permanent adjustments to allowance supply can be effective in raising prices.","PeriodicalId":47751,"journal":{"name":"Environment and Development Economics","volume":null,"pages":null},"PeriodicalIF":2.1,"publicationDate":"2021-03-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.1017/S1355770X20000595","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43797180","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":4,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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